How do you set SMART objectives?

Answer 1

Using the each letter of the SMART acronym provides insight into how to set appropriate objectives:

Specific

Define goals that have very specific outcomes. For example, "Increase revenue from the internet channel by 400%" clearly defines what the goal is and what change is necessary to find success.

Measurable

Define goals that can be measured consistently and reliably. For example, "Reduce inventory shrinkage by 10%" requires that inventory shrinkage can be measured on a frequent and consistent basis.

Attainable (sometimes Actionable)

Define goals that an individual or team can reach. For example, "Increase sales by 35%" may be quite attainable in a growing company (or marketplace) but less so for a more established or mature organization.

Realistic (sometimes Reasonable)

Define goals that are possible, given the company's core competencies and skill base. For example, "Lower costs by 50%" may be realistic for a manufacturing company who has not yet tacked scrap costs, redo costs, etc.; however, the goal may not be realistic for a utility with very fixed costs.

Timely

Define goals that can be completed in a timely fashion that is relevant to the organization's overall goals. For example, "Increase market share by 35%" may be reasonable in new or unestablished industries with limited competition but less so for industries where there are few new customers and share can only be stolen from competitors.

At the end of the day, SMART objectives should be strongly aligned to the organization's strategy in order to provide both context to an employee while supporting specific tasks in reaching the company's goals.